New Insolvency Statistics Announced by the Insolvency Service and further Brexit uncertainty from UK businesses

The insolvency Service have now released new statistics for Company Insolvencies in England and Wales for Quarter Three of 2019 (July 2019 to October 2019) on 30 October 2019.

Insolvency Statistics for Quarter 3 of 2019

The
report reveals some interesting statistics:

total company insolvencies increased in Q3 2019
compared with Q2 2019

Increase in administrations and creditors voluntary
liquidations

Administrations are 20% higher than Q2 2019 and the
highest quarterly level since Q1 2014

the liquidation rate remains low, with 1 in every
239 companies liquidated in the 12 months ending Q3 2019

the construction industry had the
highest number of new underlying company insolvencies with 3,106

the accommodation and food services
industry group showed the largest increase in insolvency procedures
with 39 extra cases (a 1.7% increase)

Brexit causing further uncertainty on businesses

According to new research from R3, one third (33%) of businesses in the UK are concerned
about the potential impact Brexit will have on their suppliers and customers.

Research reported by the insolvency
and restructuring association R3 has found that 11 per cent of businesses have
considered the potential impact of Brexit on their suppliers and customers and
are ‘very concerned’ by what they had found. The study also suggested that a
further 22 per cent were ‘somewhat’ concerned.

Larger businesses have also
considered the potential impact of Brexit on their supply chain and customer
base, with only 3 per cent of companies employing over 250 people failing to find
any potential ramifications. However, around 23 per cent of businesses
employing up to 49 people said that they had not yet considered the potential
impact of Brexit.

To conclude; with the deadline for Brexit
now extended to January it will be hard to see what impact the further delay
will have on UK businesses especially small businesses.

If you need help or advice in either considering entering into insolvency or bringing insolvency action against a debtor, our expert team can help. Whether a one-off case or a substantial debt portfolio, we offer a one-stop-shop for businesses suffering from late payments, including pre-legal collections right through to post insolvency action. For further information, please contact us.